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FOREX-Dollar rises from four-week low as U.S. stocks retreat
Published at 09/07/2020 at 16:28

* U.S. COVID cases surge on Wednesday

* NY prosecutor can get Trump's financial records -Supreme Court

* Euro falls from 1-month high vs dollar

* Chinese yuan rises to four-month high

* Graphic: World FX rates in 2020

(Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)

By Gertrude Chavez-Dreyfuss

NEW YORK, July 9 (Reuters) - The dollar rallied from a four-week low in choppy trading on Thursday, enhancing the greenback's safe-haven appeal, as U.S. stocks fell with market sentiment turning cautious as the United States hit another record high on new coronavirus cases.

The euro, meanwhile, fell from a one-month high versus the dollar, while commodity currencies, which tend to rise when there's higher risk appetite also slid against the greenback.

Some analysts said dollar sentiment turned higher after the U.S. Supreme Court on Thursday ruled that a New York prosecutor can obtain President Donald Trump's financial records but prevented - at least for now - the Democratic-led House of Representatives from obtaining similar documents.

Earlier in the global session, the dollar struggled, with the Chinese yuan climbing to a four-month peak as investors increased positions in Chinese stocks due to growing signs of a recovery in the world's second-largest economy.

Risk sentiment turned, however, during the U.S. session. Another contributing factor, apart from the Supreme Court decision, was the renewed surge in COVID cases.

More than 60,000 new COVID-19 infections were reported on Wednesday and U.S. deaths rose by more than 900 for the second straight day, the most since early June.

U.S. stocks fell on Thursday, a day after hitting a record closing high. The dollar continues to negatively correlate with stocks and risk appetite.

Analysts believed though that despite losses in the S&P 500 and the Dow Jones Index , they are still well-supported on dips.

"The risk backdrop should remain more or less positive for the foreseeable future, given the global fiscal and monetary policy setting - though we do not exclude the risk of more volatility late in the summer or early fall as markets start to factor in the U.S. presidential election," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto.

In late morning trading, the dollar index rose 0.2% to 96.668 , after earlier falling to a four-week low of 96.233.

The euro dropped 0.3% to $1.1296, not that far from a one-month high around $1.1371 it hit earlier in the day even after German export data failed to meet analysts' expectations.

The dollar was flat against the yen at 107.255 yen and was up 0.2% versus the Swiss franc


The Chinese yuan soared to a four-month high of 6.9808 in the offshore market and was last up 0.2% against the dollar at 6.9830 .

China's currency has been a star performer as investors shrug off diplomatic tension between Washington and Beijing to focus on China's improving economy and its attractive technology sector.


Currency bid prices at 11:00AM (1500 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Euro/Dollar EUR= $1.1292 $1.1329 -0.33% +0.73% +1.1370 +1.1291

Dollar/Yen JPY= 107.2700 107.2500 +0.02% -1.48% +107.3900 +107.1100

Euro/Yen EURJPY= 121.13 121.51 -0.31% -0.67% +121.9600 +121.1300

Dollar/Swiss CHF= 0.9397 0.9381 +0.17% -2.90% +0.9399 +0.9363

Sterling/Dollar GBP= 1.2616 1.2609 +0.06% -4.85% +1.2669 +1.2602

Dollar/Canadian CAD= 1.3568 1.3510 +0.43% +4.48% +1.3576 +1.3491

Australian/Doll AUD= 0.6962 0.6982 -0.29% -0.84% +0.7000 +0.6956


Euro/Swiss EURCHF= 1.0613 1.0630 -0.16% -2.20% +1.0647 +1.0613

Euro/Sterling EURGBP= 0.8950 0.8982 -0.36% +5.87% +0.9000 +0.8947

NZ NZD= 0.6562 0.6574 -0.18% -2.58% +0.6600 +0.6562


Dollar/Norway NOK= 9.4324 9.3754 +0.61% +7.45% +9.4425 +9.3432

Euro/Norway EURNOK= 10.6530 10.6310 +0.21% +8.30% +10.6675 +10.6084

Dollar/Sweden SEK= 9.2097 9.1726 +0.06% -1.47% +9.2147 +9.1481

Euro/Sweden EURSEK= 10.4046 10.3988 +0.06% -0.62% +10.4150 +10.3762

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Yuan strengthens


(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Olga Cotaga in London; Editing by Andrea Ricci)

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